Minimum Wage Laws

A wage is a price that employers are willing to pay for an employee. Prices are subject to the law of demand. We have all seen the effect of demand where a price goes up and people buy less or a price goes down and people buy more. Setting a minimum wage increases the price to employ a whole group of people which will eventually result in an increase in unemployment including those persons who will now give up on the job market and are not counted in government unemployment numbers. Employers will adjust the way they run their businesses by changing the duties of a fewer number of employees or perhaps by introducing capital assets so a fewer number of employees can be more productive. People work for low wages because their lack of skills and experience puts them at that level of productivity. The way to increase productivity and the associated wage level is to increase skills and experience. The first step to increased productivity is to gain skills and experience in a low paying job, a step that is not available for many due to minimum wage laws. Many politicians and their supporters think the minimum wage is compassionate while in fact it consigns many to despair of being able to work. One does wonder about the sincerity of politicians since they increase the minimum wage a few dollars rather than to something like thirty dollars. Minimum wage laws are a prime example of the untended consequences of government intervention in the economy where those it is supposed to help are actually hurt.

Government does NOT create jobs

I have noticed in the press that once again government is saying that they are creating jobs. If government returning tax funds to the private sector creates jobs, then when the taxes are taken out of the private sector, jobs are destroyed. It would be more accurate to say that government is restoring previously destroyed jobs in the private sector while incurring administrative costs in taking the taxes out and then putting them back in. The next worst thing the government does is destroy productive jobs in the private sector and replace them with productive jobs in the public sector which are less effective due to bureaucratic management. The next worst thing the government does is destroy productive jobs in the private sector and replace them with unproductive jobs in the public sector. The next worst thing the government does is destroy productive jobs in the private sector and replace them with bureaucratic waste and inefficiency. Canadian governments take over 40% of the annual private sector income in taxes which is a tremendous loss in potential investment and the associated employment. Governments ignore the negative effect they have on the economy. When a government claims to be creating jobs either they are dishonest or they do not understand the impact of taxes on the economy. The truth is that the net effect of governments is to destroy jobs. Robert McFadzean

Four Reasons to Vote Libertarian

Check this out; especially the fourth reason which both Tim and I think is the most important one. It has to do with integrity in that we are all libertarians in our private lives, but we support something entirely different as voters.

Federal Election 2015

Please support libertarian candidates in the current 2015 federal election.  If we could elect even one libertarian in this election, it would give a big boost to the libertarian cause here in Alberta.  Even a good showing in this election will be advantageous and help to get our provincial party going.  Here are candidates who are running:

  • Calgary Forest Lawn – Matt Badura
  • Calgary Heritage – Steven  Paolasini
  • Calgary Nose Hill – Edward  Gao
  • Calgary Signal Hill – Tim Moen
  • Edmonton Griesbach – Maryna  Goncharenko
  • Edmonton Mill Woods – Allen K.W.  Paley
  • Edmonton Riverbend – Steven Lack
  • Edmonton Strathcona – Malcolm Stinson
  • Edmonton West – Alexander Dussault
  • Edmonton – Wetaskiwin – Brayden Whitlock
  • Foothills – Cory Morgan
  • Fort McMurray – Cold Lake – Scott Berry
  • Grande Prairie – MacKenzie – Dylan Thompson
  • Lakeland – Robert George McFadzean
  • Peace River – Westlock – Jeremy Sergeew
  • Red Deer – Mountain View – James Walper
  • Sherwood Park – Fort Saskatchewan – Steven Burry
  • Yellowhead – Cory Lystang

 

Our Culture of Freedom

The word libertarian is derived from liberty which is synonymous with freedom. We were taught and learned as children that the way to get along with others and have fun together was to not hit, or be bossy, or mess with their stuff. The same principle continues to work among adults; we respect the right of others to conduct their lives as they choose, and use their possessions as they choose. We live in a culture of freedom. People work together, buy and sell, attend their various churches or no church, and cooperate in other community organizations. There is peace and prosperity. And when some among us violate the principle of respect for the person and possessions of others, there is less peace and prosperity. Libertarians get involved in politics because they would like to see the same culture of freedom apply in government as it does in their communities. Governments legislate regulations which dictate what people can and cannot do. Such regulations are illegitimate since the people sending representatives to government, have no authority to make these regulations. Forcing people to abide by government regulations is tyranny and is immoral. Government regulations violate the inalienable right of people to decide for themselves what they will do. Government regulations are illegitimate, immoral, and just plain wrong. Taxation is also something that people have no authority to do among themselves. Consequently, people cannot authorize government representatives to tax. Taxation is taking other people’s property under threat of violence which is immoral. Taxation wrongly violates a person’s inalienable right to property. Taxation is also illegitimate, immoral, and just plain wrong. Government regulation and taxation stand in stark contrast to the culture of freedom in our private lives. The libertarian objective is to make government operate according to our culture of freedom rather than in opposition to it. Robert McFadzean

Liberty and Property Rights

Liberty is based on property right. Property means a person’s body and their legitimately owned possessions. Right means that a person has the responsibility to choose what they do with themselves and their possessions and be accountable for those choices. Property right also means that a person can defend themselves and their possessions against aggression. Property right is an inalienable right. Inalienable means that it is part of being a live person and cannot be taken away. It is a God given or natural right. No government has the authority to grant or retract property rights. Property right does not mean that a person can do whatever they want without respect or consideration for the property rights of others. If a person could choose to assault another and that was acceptable, then property rights would have no value. Property rights can only be useful when most everyone avoids violating the property rights of other people. In a free and just society with property rights, when a person’s property right is violated, the violator loses their property right to the extent that they must compensate for or make whole the property that they violated. Most people in Canada have experience with property rights. Most Canadians do not fear that they are going to be assaulted or have their possessions stolen. They have been taught as they grew up to respect property rights and that it is wrong to harm others or to steal their things. This is the basis of the freedom we enjoy in Canada. This freedom is the result of how Canadians treat each other. The police can help with those who violate property rights, but there would not be enough police in a society that doesn’t recognize property rights. When the culture of a country does not teach and abide by property rights, the police will be as corrupt as everyone else. Governments cannot coerce people to be free. Freedom and the associated prosperity is the result of a people with a culture of property rights. Robert McFadzean

Who Is To Blame For Taxes?

Previously I explained why taxation is wrong and immoral even though it is legal.  Who is to blame?  It is human nature to want to blame someone else like our politicians and/or bureaucrats, but you and I are to blame.  The people in government are citizens like the rest of us and it is we the citizens who give our assent to the tax and spend form of government whether we do so actively or passively.  If we agree that taxation is wrong and do nothing about it, then we sustain taxation by default. Most political parties have a tax and spend platform.  Only libertarians take a different approach to government.  The libertarian platform is liberty meaning that a person has the right to live as they choose and use of their legitimately owned possessions as they choose.  The only proper role of government is to protect the liberty of its citizens.  More on that later.  Consider taking an active part in getting rid of taxes and supporting liberty by joining together in the libertarian movement. Robert McFadzean

Government Authority and Taxation

Government has no authority to tax its citizens.  Authority is used here in the sense of having the right to do something.  The right to do something could be an inalienable right like the right to life which means that a person has the authority to defend themselves.  The right to do something could also be authorized as when a person hires a security guard to protect their property. Government is organized to serve its citizens.  Taxation is taking possessions from citizens by force backed up by police power.  No citizen has the right or authority to take another citizen’s possessions which is called stealing or robbery.  Citizens cannot authorize their government to tax because they have no such right themselves.  Taxation is similar to armed robbery in that it is taking another person’s possessions by force.  The difference is that the armed robber cares nothing about subtlety and  legality whereas the government passes legislation to make taxation legal.   Taxation may be legal, but it is immoral and absolutely wrong. There is more that needs to be said about this, but for now let me emphasize that I am not advocating rebellion against our governments, nor suggesting that we should not pay our taxes.  Taxation is the legal law of the land.  I am suggesting that we should fix the wrong headed thinking that gives us tax and spend government. Robert McFadzean

About “Libertarianism.com”

I have looked through the Libertarianism.com web site (note that it is not libertarian.com) and find it to be a good site for a basic understanding of the libertarian philosophy.  One part that I particularly like is the quotes of several libertarians on controversial issues.  Libertarians agree on the principle of having respect for others and their property, but there can be different applications of that principle on a given issue.  “Short answers to tough questions” is another part of the web site that gives a good idea of one libertarian’s views on various issues.

Central Planning in Canada?

Central planning is alive and flourishing. In most countries today, governments practice central planning through taxation, inflation, and regulation. This is not so much government ownership of assets as in the former Soviet Union, but rather the centrally planned and inefficient use of resources that have been taken from the private sector. Even if those resources go back to private enterprise as government contracts, the government is deciding rather than the market on where those resources will be used. Government control of resources in any way is central planning. Central banks are another way for government to take resources out of the economy and regulate the banking industry to our detriment. They create money out of thin air which goes first to the privileged recipients of the central planners. This causes the money supply to go up such that eventually prices go up and it is the average citizen on the street who loses out. Wage rates don’t catch up unless maybe you can legislate it. This creation of money is a subtle form of taxation and is also the source of the boom and bust cycles that we go through. The government causes the inflationary boom and takes credit for the apparent prosperity. When the inflationary bubble becomes known and bursts, the government now accuses the private sector and assumes the posture of rescuer. It turns out that the rescue is more inflation and regulation. Of course, they might borrow the money first and later print the money to pay for it, but it ends up being higher prices and more taxes for the average citizen. The whole system of creating money out of thin air is immoral since it is a legalized form of counterfeiting. Why should government decide how to spend half of our income? Are politicians and bureaucrats smarter or of higher moral character than other citizens? (I am not trying to be sarcastic. I just don’t know how else to put it.) We as private citizens have no right to take other citizen’s property, so how can we authorize our government to do so? It is actually like any other thief; they do it because they can and expect to get away with it. And they do get away with it as long as we buy in to the miss-information and euphemisms that are used to cloud our minds. Freedom and prosperity go together. So far we have enough freedom in the western democracies that the private sector can carry the tax burden. If we allow our governments to keep expanding, this will eventually turn around. I think the economy is one major factor contributing to more women having fewer children and working out of the home. I think health care line ups have the same origin as grocery line ups in the former Soviet Union. I don’t fault the people working in the public sector. The resources taxed out of the private sector are also taking jobs out of the private sector. When the government uses some of those resources to ‘create’ jobs in the public sector we cannot blame people for taking those jobs rather than sitting idle. Most of the people that I know in the public sector are working as diligently as they would in the private sector. It is the system that is the problem, not the people. If we returned the resources and the people back to the private sector, we would have greater productivity and prosperity and the people who moved from the public to the private sector would be happier along with everyone else. Prosperity and happiness comes with the freedom of consumer sovereignty not through central planning. Robert McFadzean